Orange City SD hears five‑year forecast and readies communications for possible operating levy

The Orange City School District board on Feb. 9 received a detailed five‑year financial forecast showing continuing deficit spending and discussed next steps to address projected shortfalls.

Treasurer Mister Plattco told the board the district ended fiscal 2025 with a cash balance of about $21.1 million and is projecting FY2026 revenues of roughly $61.2 million against expenditures near $63.2 million, producing an expected deficit of about $2 million this year. He said the district’s general fund balance is about $14.1 million and that the timing of the county’s property tax settlement has compressed cash flow: “we're only getting 2,860,000.00” in the next advance, he said, and the district will likely need to liquidate investments to meet payroll until the March settlement.

The forecast presentation noted revenue and expenditure trends (property taxes are the largest revenue source at roughly $46 million, or ≈75% of revenue) and assumptions tied to state reporting changes under House Bill 96. Plattco showed modeling that a 5‑mill operating levy in calendar year 2026 would keep the district above its 90‑day cash reserve through the forecast window; waiting until 2027 would likely require a higher mil‑rate (board discussion suggested 6–6.5 mills) to achieve a comparable result.

Why it matters: Board members emphasized urgency. Multiple trustees urged immediate preparation of factual materials and community outreach so voters understand what an operating levy would fund; several pointed to the need to coordinate timing with Orange Village to avoid competing levies on the same ballot. The board agreed to prepare a board‑approved fact sheet and other “warm‑up” communications (web materials, videos, and presentations) and to start identifying community members for a ballot committee, noting that state guidance requires levy committees be run by community members rather than by the board.

Board next steps and process details: The board did not pass a levy resolution at the Feb. 9 meeting. Trustees asked staff to assemble factual financial materials, have legal counsel review public fact sheets to ensure compliance with state guidance (referred to in the meeting as “Otter State guidance”), and return for additional discussion at the Feb. 23 meeting. The board noted the filing deadlines for a November ballot typically require August filings for resolutions, and that committee formation, outreach, and messaging should begin well before that deadline.

The meeting’s financial consent agenda (donations and grant items discussed during the treasurer’s report) was approved by vote later in the meeting; staff will return with the formal levy timeline and proposed language if the board chooses to proceed.